\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
Key investment points
Event: the company released its annual report for 2021, and achieved an operating revenue of 4.022 billion yuan in 2021, with a year-on-year increase of 52.57%; The net profit attributable to the parent company was 863 million yuan, a year-on-year increase of 58.77%; The net profit attributable to the parent company after non deduction was 813 million yuan, a year-on-year increase of 58.59%.
Comments:
The profitability of the company remained stable as a whole. In 2021, the company's gross profit margin was 76.01%, a slight decrease of 0.24 percentage points year-on-year; During the period, the expense rate decreased by 0.31 percentage points year-on-year to 50.45%, of which the sales expense rate and financial expense rate decreased by 0.20 and 0.22 percentage points year-on-year, and the management expense rate increased slightly by 0.12 percentage points year-on-year. The company's net profit margin increased by 0.86 percentage points year-on-year to 21.48%.
In 2021, the company achieved rapid growth in both online and offline sales. The company continues to rely on Tmall, Jingdong, vip.com and other electronic business platform to carry out cosmetics online sales business, while increasing the resource platform for the new tiktok platform. In 2021, the company's online sales revenue reached 3.299 billion yuan, a year-on-year increase of 51.89%, accounting for 82.33% of its main business. At the same time, the company also accelerated the expansion of offline channels. In 2021, the company's offline revenue was 708 million yuan, with a year-on-year increase of 58.04%, and its proportion in the main business increased by 0.57 percentage points to 17.67%, mainly due to the channel expansion of Watson and OTC.
Continuous improvement of the company's brand matrix. In 2021, the company insisted on stabilizing the two super explosive products of cream cream and sunscreen, stabilizing the market position of the special cream, continuing to launch the product line of "high Moisturizing Series", and increasing the stability of emulsion / cream categories. In addition, the company launched a series of "freeze-drying facial mask" products that successfully relieve fatigue. Under the double penetration of efficiency expansion and category innovation, the company further develops its main brand, and launches new products focusing on whitening and anti-aging effect, and builds multiple efficacy skin care matrix to help brand spiral expansion. In terms of sub brands, in 2021, the flagship store of "Winona baby" brand tmall was officially put into operation, and then became the dark horse of the industry, ranking the top 20 of the year. During the "double 11" event in 2021, "Winona baby" brand became a cutting-edge and high growth brand in the industry, ranking the top 10 in the category of subdivided industries, achieving an explosive growth of more than 10 times year-on-year. Among them, the carefully created large popular "Shurun nourishing cream" series products rushed into the top 3 of popular products in subdivided industries.
Investment suggestion: the company's leading position in functional skin care is stable. With the continuous improvement of brand power, channel power and other capabilities, the company's future growth can be expected. It is estimated that the company's EPS from 2022 to 2023 will be 2.76 yuan and 3.81 yuan respectively, and the current share price corresponding to PE will be 61 times and 44 times respectively, maintaining the "recommended" rating of the company.
Risk tip: the risk of intensified industry competition; The risk of relative concentration of sales platforms; Risk of seasonal fluctuations in sales; The risk that the marketing model cannot adapt to market changes; Risks of entrusted processing; Risk of product quality control, etc.
